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On March 31, the FTC announced that it had reached a $53 million settlement with a prepaid card company over charges that the company deceived consumers about access to funds deposited on its debit cards in violation of the FTC Act. The 2016 complaint alleged that the company participated in deceptive advertising claims by informing consumers that they would be able to immediately access funds stored on reloadable prepaid debit cards. Many consumers claimed, however, that they were unable to access their money for weeks or at all because the company either “denie[d] or delay[ed] activation of the card, or because it block[ed] consumers from using it,” and that as a result, many of them suffered severe financial hardships. Moreover, the complaint also claimed that some consumers who closed accounts and requested refunds had to wait several weeks for their money or were informed their funds were allegedly depleted by “account inactivity fees.” The settlement requires the company to provide the $53 million settlement amount to consumers in refunds. Read more here.

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